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Revenue up 2.5% and diluted EPS accretion of 22.5%

Q3-F2026 performance highlights

Revenue of $4.19 billion, up 2.5% year-over-year or 1.3% year-over-year in constant currency¹;
Earnings before income taxes of $633.9 million, up 14.9% year-over-year, for a margin¹ of 15.1%;
Adjusted earnings before interest and taxes^1,2 of $681.7 million, up 2.3% year-over-year, for a margin¹ of 16.3%;
Net earnings of $465.2 million, up 13.8% year-over-year, for a margin¹ of 11.1%, and diluted EPS of $2.23, up 22.5% year-over-year;
Adjusted net earnings¹^,² of $478.3 million, up 1.7% year-over-year, for a margin¹ of 11.4%, and adjusted diluted EPS^1,2 of $2.29, up 9.0% year-over-year;
Returned $35.7 million back to its shareholders through the payment of a cash dividend ($0.17 per share);
Cash provided by operating activities of $604.5 million, representing 14.4% of revenue¹ and $2.59 billion or 15.8% of revenue¹ on a trailing twelve month basis;
Bookings¹ of $4.20 billion, for a book-to-bill ratio¹ of 100.1% or 108.1% on a trailing twelve month basis¹; and
Backlog¹ of $31.79 billion or 1.9x annual revenue.

Note: All figures in Canadian dollars. Q3-F2026 MD&A, interim condensed consolidated financial statements and accompanying notes can be found at cgi.com/investors and have been filed with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca and the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.

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¹	Constant currency revenue growth, adjusted earnings before interest and taxes, adjusted earnings before interest and taxes margin, adjusted net earnings, adjusted net earnings margin and adjusted diluted EPS are non-GAAP financial measures or ratios. Earnings before income taxes margin, net earnings margin, cash provided by operating activities as a percentage of revenue, bookings, book-to-bill ratio, book-to-bill ratio trailing twelve months and backlog are key performance measures. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest International Financial Reporting Standards (IFRS Accounting Standards) measure, as applicable. These are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other companies.
²	Q3-F2026 adjusted for $13.1 million of restructuring, acquisition and related integration costs, net of tax; Q3-F2025 adjusted for $61.5 million of restructuring, acquisition and related integration costs, net of tax.

MONTRÉAL, July 29, 2026 /CNW/ -- CGI (TSX:GIB) (NYSE:GIB)

Q3-F2026 results

"CGI's results in the quarter continue to reflect our positioning to meet client demand, as well as our operational excellence—both of which contributed to revenue growth, EPS accretion, and strong cash generation," said Tim Hurlebaus, President and Chief Executive Officer. "Strong government sector awards contributed to a 108% book-to-bill over the past year, up 7% year-over-year. Combined with a robust backlog of contracted engagements and a rising opportunity pipeline, we remain positioned to continue the profitable growth momentum we realized in the quarter."

"Across every industry, clients are increasingly focused on how to securely operate with AI embedded at enterprise scale," continued Mr. Hurlebaus. "Importantly, clients recognize that long-term business and mission value now depends as much on modern data, cybersecurity and organizational readiness as it does on AI innovation. This shift continues to create new opportunities for CGI to partner with clients to drive efficiency, modernization and transformation—all while preserving clients' flexibility to adapt as technologies evolve."

For the third quarter of Fiscal 2026, the Company reported revenue of $4.19 billion, representing a year-over-year growth of 2.5%. When excluding foreign currency variations, revenue grew by 1.3% year-over-year.

Earnings before income taxes were $633.9 million, up 14.9% year-over-year, for a margin of 15.1%, up 160 basis points compared to 13.5% in the same period last year. Recorded in the period were acquisition and related integration costs of $17.2 million.

Adjusted earnings before interest and taxes¹ were $681.7 million, up 2.3% year-over-year, for a margin of 16.3%, stable when compared to the same period last year.

Net earnings were $465.2 million, up 13.8% year-over-year, for a margin of 11.1%, up 110 basis points compared to 10.0% in the same period last year. Diluted earnings per share, as a result, were $2.23 compared to $1.82 in the same period last year, representing an increase of 22.5%.

Adjusted net earnings¹ were $478.3 million, up 1.7% compared with the same period last year, for a margin of 11.4%, down 10 basis points compared to the same period last year. On the same basis, diluted earnings per share increased by 9.0% to $2.29 from $2.10 for the same period last year.

During the third quarter Fiscal 2026, we returned $35.7 million back to our shareholders through the payment of a cash dividend.

Cash provided by operating activities was $604.5 million, representing 14.4% of revenue. On a trailing twelve month basis, cash provided by operating activities was $2.59 billion, representing 15.8% of revenue.

Bookings were $4.20 billion, representing a book-to-bill ratio of 100.1% or 108.1% on a trailing twelve-month basis. As of June 30, 2026, the Company's backlog reached $31.79 billion, representing 1.9x annual revenue.

As of June 30, 2026, the number of CGI consultants and professionals worldwide stood at approximately 94,000.

During the third quarter of Fiscal 2026, the Company invested $105.0 million back into its business, acquired businesses for an investment of $49.6 million net of cash acquired, and invested $412.9 million under its Normal Course Issuer Bid to purchase and cancel 4,427,600 Class A subordinate voting shares.

As at June 30, 2026, long-term debt and lease liabilities, including both their current and long-term portions, were $4.34 billion, up from $4.24 billion at the same time last year, mainly driven by a foreign exchange impact of $95.8 million. As of the same date, net debt² stood at $3.68 billion, up from $3.12 billion at the same time last year. The net debt-to-capitalization ratio² was 26.6% at the end of June 2026, compared to 23.4% at the same time last year.

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¹	Q3-F2026 adjusted for $13.1 million of restructuring, acquisition and related integration costs, net of tax; Q3-F2025 adjusted for $61.5 million of restructuring, acquisition and related integration costs, net of tax.
²	Net debt and net debt-to-capitalization ratio are non-GAAP financial measures or ratios. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest IFRS Accounting Standards measure, as applicable. These are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other companies.

Financial highlights	Q3-F2026	Q3-F2025	Change
In millions of Canadian dollars except earnings per share and where noted
Revenue	4,193.0	4,090.2	102.8
Year-over-year revenue growth	2.5 %	11.4 %	(890 bps)
Constant currency revenue growth	1.3 %	7.0 %	(570 bps)
Earnings before income taxes	633.9	551.6	82.3
Margin %	15.1 %	13.5 %	160 bps
Adjusted earnings before interest and taxes¹	681.7	666.1	15.6
Margin %	16.3 %	16.3 %	0 bps
Net earnings	465.2	408.6	56.6
Margin %	11.1 %	10.0 %	110 bps
Adjusted net earnings¹	478.3	470.1	8.2
Margin %	11.4 %	11.5 %	(10 bps)
Diluted EPS	2.23	1.82	0.41
Adjusted diluted EPS¹	2.29	2.10	0.19
Weighted average number of outstanding shares (diluted) In millions of shares	208.9	224.4	(15.5)
Net finance costs	30.5	30.9	(0.4)
Cash and cash equivalents	625.6	1,130.2	(504.6)
Long-term debt and lease liabilities²	4,337.1	4,244.1	93.0
Net debt	3,684.0	3,115.8	568.2
Net debt to capitalization ratio	26.6 %	23.4 %	320 bps
Cash provided by operating activities	604.5	486.6	117.9
As a percentage of revenue	14.4 %	11.9 %	250 bps
Days sales outstanding (DSO)³	43	43	0
Purchase for cancellation of Class A subordinate voting shares and related tax	412.9	286.2	126.7
Return on invested capital (ROIC)³	13.4 %	14.6 %	(120 bps)
Bookings	4,199	4,146	53
Backlog	31,794	30,580	1,214

To access the financial statements – click here

To access the MD&A – click here

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1	Q3-F2026 adjusted for $13.1 million of restructuring, acquisition and related integration costs, net of tax; Q3-F2025 adjusted for $61.5 million of restructuring, acquisition and related integration costs, net of tax.
2	Long-term debt and lease liabilities include both the current and long-term portions of the long-term debt and lease liabilities.
3	ROIC is a non-GAAP financial measure. DSO is a key performance measure. See "Non-GAAP and other key performance measures" section of this press release for more information, including quantitative reconciliations to the closest IFRS Accounting Standards measure, as applicable. These are not standardized financial measures under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other companies.

Declaration of Dividend

On July 28, 2026, our Board of Directors approved a quarterly cash dividend of $0.17 per share. This dividend is payable to holders of Class A subordinate voting shares and Class B shares (multiple voting) on September 18, 2026, to shareholders of record as of the close of business on August 14, 2026. The dividend is designated as an 'eligible dividend' for Canadian tax purposes.

Q3-F2026 results conference call

Management will host a conference call this morning at 9:00 a.m. (EDT) to discuss results. Participants may access the call by dialing +1-800-717-1738 Conference ID: 69190 or via cgi.com/investors. For those unable to participate on the live call, a podcast and copy of the slides will be archived for download at cgi.com/investors. Interested parties may also access a replay of the call by dialing +1-888-660-6264 Passcode: 69190, until August 29, 2026.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 94,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2025 reported revenue is $15.91 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

Forward-looking information and statements

This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of the Company, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues, inflation, tariffs and/or trade wars) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services to address emerging business demands and technology trends (such as artificial intelligence), to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, legal and operational risks inherent in contracting with government clients, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to reduce our carbon emissions, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, including through the use of artificial intelligence, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, our ability to declare and pay dividends, interest rate fluctuations and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI's MD&A for the three months and nine months ended June 30, 2026 and 2025, which is incorporated by reference in this cautionary statement. We also caution readers that the risks described in the previously mentioned section and in other sections of CGI's MD&A for the three months and nine months ended June 30, 2026 and 2025, and in our other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.

Non-GAAP and other key performance measures

Non-GAAP financial measures and ratios used in this press release: Constant currency revenue growth, adjusted earnings before interest and taxes, adjusted earnings before interest and taxes margin, adjusted net earnings, adjusted net earnings margin, adjusted diluted EPS, net debt, net debt to capitalization ratio, and return on invested capital (ROIC). CGI reports its financial results in accordance with IFRS Accounting Standards. However, management believes that these non-GAAP measures provide useful information to investors regarding the company's financial condition and results of operations as they provide additional measures of its performance. These measures do not have any standardized meaning prescribed by IFRS Accounting Standards and are therefore unlikely to be comparable to similar measures presented by other issuers and should be considered as supplemental in nature and not as a substitute for the related financial information prepared in accordance with IFRS Accounting Standards. Key performance measures used in this press release: cash provided by operating activities as a percentage of revenue, bookings, book-to-bill ratio, book-to-bill ratio trailing twelve months, backlog, days sales outstanding (DSO), earnings before income taxes margin, and net earnings margin.

Below are reconciliations to the most comparable IFRS Accounting Standards financial measures and ratios, as applicable.

The descriptions of these non-GAAP measures and ratios and other key performance measures can be found on pages 3, 4, 5 and 6 of our Q3-F2026 MD&A which is posted on CGI's website, and filed with the Canadian Securities Administrators on SEDAR+ at www.sedarplus.ca and the U.S. Securities and Exchange Commission on EDGAR at www.sec.gov.

Q3-F2026

Reconciliation between constant currency revenue growth and growth.

	For the three months ended June 30,			For the nine months ended June 30,
	2026	2025	%	2026	2025	%
In thousands of CAD except for percentages
Total CGI revenue	4,193,022	4,090,182	2.5 %	12,427,546	11,898,836	4.4 %
Constant currency revenue growth	1.3 %			2.1 %
Foreign currency impact	1.2 %			2.3 %
Variation over previous period	2.5 %			4.4 %

Reconciliation between earnings before income taxes and adjusted earnings before interest and taxes.

	For the three months ended June 30,				For the nine months ended June 30,
	2026	% of revenue	2025	% of revenue	2026	% of revenue	2025	% of revenue
In thousands of CAD except for percentages
Earnings before income taxes	633,924	15.1 %	551,587	13.5 %	1,851,385	14.9 %	1,725,949	14.5 %
Add back:
Restructuring	—	— %	45,547	1.1 %	—	— %	98,000	0.8 %
Acquisition and related integration costs	17,214	0.4 %	38,148	0.9 %	84,363	0.7 %	65,471	0.6 %
Net finance costs	30,538	0.7 %	30,861	0.8 %	92,649	0.7 %	54,104	0.5 %
Adjusted earnings before interest and taxes	681,676	16.3 %	666,143	16.3 %	2,028,397	16.3 %	1,943,524	16.3 %

Adjusted Net Earnings and Earnings per Share

	For the three months ended June 30,			For the nine months ended June 30,
	2026	2025	Change	2026	2025	Change
In thousands of CAD except for percentages and shares data
Earnings before income taxes	633,924	551,587	14.9 %	1,851,385	1,725,949	7.3 %
Add back:
Restructuring	—	45,547		—	98,000
Acquisition and related integration costs	17,214	38,148		84,363	65,471
Adjusted earnings before income taxes	651,138	635,282	2.5 %	1,935,748	1,889,420	2.5 %
Income tax expense	168,723	142,975	18.0 %	499,468	449,019	11.2 %
Effective tax rate	26.6 %	25.9 %		27.0 %	26.0 %
Add back:
Tax deduction on restructuring	—	12,397		—	26,741
Impact on effective tax rate	— %	0.1 %		— %	0.1 %
Tax deduction on acquisition and related integration costs	4,147	9,802		13,606	13,879
Impact on effective tax rate	(0.1 %)	— %		(0.5 %)	(0.2 %)
Adjusted income tax expense	172,870	165,174	4.7 %	513,074	489,639	4.8 %
*Adjusted effective tax rate*	26.5 %	26.0 %		26.5 %	25.9 %
Adjusted net earnings	478,268	470,108	1.7 %	1,422,674	1,399,781	1.6 %
*Adjusted net earnings margin*	11.4 %	11.5 %		11.4 %	11.8 %
Weighted average number of shares outstanding
Class A subordinate voting shares and Class B shares (multiple voting) (basic)	207,765,623	221,781,407	(6.3 %)	211,864,387	223,752,383	(5.3 %)
Class A subordinate voting shares and Class B shares (multiple voting) (diluted)	208,850,248	224,356,551	(6.9 %)	213,287,367	226,568,058	(5.9 %)
Adjusted earnings per share (in dollars)
Basic	2.30	2.12	8.5 %	6.72	6.26	7.3 %
Diluted	2.29	2.10	9.0 %	6.67	6.18	7.9 %

Reconciliation between long-term debt and lease liabilities and net debt

As at June 30,	2026	2025
In thousands of CAD except for percentages
Reconciliation between long-term debt and lease liabilities¹ and net debt:
Long-term debt and lease liabilities¹	4,337,091	4,244,106
Minus the following items:
Cash and cash equivalents	625,634	1,130,220
Short-term investments	7,790	4,568
Long-term investments	27,733	27,676
Fair value of foreign currency derivative financial instruments related to debt	(8,066)	(34,154)
Net debt	3,684,000	3,115,796
Net debt to capitalization ratio	26.6 %	23.4 %
Return on invested capital	13.4 %	14.6 %
Days sales outstanding	43	43

¹	As at June 30, 2026, long-term debt and lease liabilities were $3,676.9 million ($3,575.2 million as at June 30, 2025) and $660.2 million ($668.9 million as at June 30, 2025), respectively, including their current portions.

View original content:https://www.prnewswire.com/news-releases/cgi-reports-third-quarter-fiscal-2026-results-302837150.html

SOURCE CGI Inc.

View original content: http://www.newswire.ca/en/releases/archive/July2026/29/c9866.html